eBay plans to cut its global workforce by 7% – or 2,400 jobs – in the first quarter of this year.
The move, revealed as the online commerce and payments company reported a 9% rise in sales in 2014, will affect eBay Marketplaces, PayPal and eBay Enterprise around the world, including, potentially, the UK. eBay said the move was intended to “simplify organisational structures” and “ensure that we are set-up to compete and win” ahead of eBay’s split with PayPal.
The commerce platform and payments company, which trades in the UK as ebay.co.uk, said mobile and cross-border trading had both grown significantly. Mobile commerce volumes rose by 30% in the fourth quarter to take revenue for the year to $27.9bn, or 34% of total sales. In the fourth quarter alone, cross-border trade grew by 20% to account for 21% of transactions. Revenue rose by 9%, or 12% on a non-GAAP basis, during the year, while profit in the fourth quarter rose to $936m on $4.9bn on revenue.
“In a year of unexpected events and distractions, we ended 2014 with double-digit revenue growth, solid earnings growth and strong cash flow, reflecting the fundamental strengths of our company,” said John Donahoe, president and CEO of eBay Inc. “PayPal had another strong quarter, finishing an excellent year. eBay, while facing challenges, continues to be a great business and is focused on stabilizing performance and engaging its core customers.”
He said plans to separate eBay and PayPal were on track.
